On Monday, Intel Corp. has finalized its deal to buy Israeli autonomous vehicle technology firm Mobileye for an amount of $15.3 billion. This deal could push the U.S. chipmaker further into the driverless car technology sector where it can act as a competitive force for its rivals Nvidia Corp. and Qualcomm Inc.

Mobileye and Intel are already working in a collaboration along with German carmaker BMW. The task is to position 40 test vehicles on the road by the second half of 2017.

It is reported that an amount of $63.54 a share in cash would be paid by Intel to purchase the Israeli company.

Intel hasn’t been able to successfully place itself in the list of significant players acting in the autonomous vehicle technology sector, however, it has invested in almost half a dozen start-up companies which develop various components for self-driving systems, ranging from sensors to robotics.

The incoming of Mobileye is a positive advantage for the global chip maker since a broad portfolio such as sensor chips, roadway mapping, cloud software, cameras, in-car networking as well as data fusion and management would fall under its offerings.

Betsy Van Hees, analyst at Loop Capital Markets said “this is a tremendous opportunity” for Intel to enter the market which holds “significant growth opportunities".

Mobileye already manages successful deals with 27 car makers, which currently makes the company an important firm in the automobile industry. Apart from this, the Jerusalem-based firm also controls two-thirds of the market of a particular software which runs semi-autonomous cruise control systems and automatic emergency braking fitted in trucks and cars.

The merged firm will be based in Israel and would be led by Amnon Shashua, Mobileye's chief technology officer, co-founder, and chairman.

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